Following the ASAE Community Impact Coalition’s calls on February 4^th and March 10th, we want to share the latest on the Coalition’s efforts to protect the tax-exempt status of nonprofits. As Congress considers expanding the 2017 Tax Cuts and Jobs Act (TCJA), it must offset the ~$4+ trillion cost, putting various tax revenue sources under review.

 As many of you learned during the ASAE tax reform update at the AMCI annual meeting, the Coalition—now comprising over 80 organizations—is working with top D.C.-based lobbying and PR firms to ensure lawmakers understand the vital role of nonprofits and the risks of jeopardizing their tax-exempt status. The AMC Institute and some of our AMCI members belong to the Coalition and are actively engaged in representing the interests of our community.

The Coalition’s communications strategy is currently focused on educating policymakers about the nonprofit sector’s contributions to society, industries, and professions. Its goal is to ensure that before Congress finalizes any proposals, nonprofit tax exemption remains off the table. That effort is even more important in light of two recent developments:

• Tax Legislation: Last week, House Ways and Means Republicans held two days of closed-door drafting sessions to outline the tax provisions for Congressional Republicans' reconciliation bill. Negotiations with Senate Republicans on a tax plan are expected to follow shortly.

• Media: The Wall Street Journal recently published an op-ed urging Congress to increase taxes on the tax-exempt sector, specifically calling out the Coalition by name. In response, the Coalition submitted a Letter to the Editor to correct the op-eds misleading portrayal of our sector, which was published recently.

Association management company clients, while small in comparison to other organizations that may be a more direct target of tax reform efforts, cannot be complacent because of their size. Our community—both companies and clients—should support the Coalition's proactive advocacy to keep nonprofits out of the tax bill from the outset. Taxation of any nonprofits today can set a dangerous precedent, leading to future tax measures—even if AMC clients should avoid the current reform efforts. The search for new revenue is an enduring Congressional exercise.   

How You Can Help

Given the number of organizations our industry serves, AMCs can have a powerful impact in supporting this effort. To do, we should help our clients take the following actions:

• Spread the Word: Share the Coalition’s mission with your volunteers, members, and stakeholders. Direct them to the Coalition’s online landing page and this short YouTube video for a quick introduction.

• Leverage the Coalition Toolkit: Located at the bottom of the Coalition’s landing page, the Toolkit includes FAQs, an informational handout on the impact of nonprofits, and key messaging resources for association communications.
• Amplify on Social Media: Follow, tag, and share the Coalition’s social media channels to raise awareness. Encourage your volunteers to do the same:
• Twitter/X: @CI_Coalition
• LinkedIn: communityimpactcoalition
• Facebook: communityimpactcoalition
• Share Your Client’s Story: If your client organization has a compelling story about its contributions to the economy, healthcare, science, business, a profession, or any other aspect of society, we want to hear it. The Coalition is collecting real-world examples of the positive impact of nonprofits—to highlight the potential consequences of losing tax-exempt status. Send your stories to me, and I will forward them to the Coalition for broader use.
• Incorporate Coalition Talking Points During Hill Visits: If you or your clients are meeting with lawmakers or their staff on Capitol Hill in the coming months, add this issue to all the others you plan to discuss. Look at the Toolkit for the Coalition’s key messaging and office leave-behinds. Feel free to also reach out to me for help with any talking points.
• Leverage Existing Capitol Hill Relationships. The Coalition is also mapping relationships between its members (including Smithbucklin and its clients) and legislators to identify potential Congressional champions and capitalize on existing relationships. If you or your client have any strong relationships on the Hill who we can approach to support this cause, please send that information to me and I can relay it to the Coalition.

We recognize that the potential loss of tax-exempt status is a serious concern for AMC clients. We’ll continue to closely monitor developments, advocate for our industry, and keep you informed.

Michael Silverman, JD
Smithbucklin